N.Y. Debtor & Creditor Law § 36: Exempt security not credited

§ 36. Exempt security not credited. When any creditor has legal or

equitable security upon assets which are exempt from process for the

satisfaction of unsecured debts and are duly claimed as exempt by the

insolvent debtor, the value of such security shall not be credited upon

the claim. Amounts realized by the creditor from such security after

liquidation proceedings are begun shall be disregarded in computing

dividends, unless the dividend so computed exceeds the sum actually

owing upon the claim, in which event only the amount owing shall be

paid.